Transfer credit from credit card to bank account

We hear about transfers between bank accounts all the time. Less so about transfers between credit cards and bank accounts.

The latter transaction type is possible. But credit cards aren’t designed for it, and you’ll probably pay higher fees. If you need funds fast, consider alternatives first.

Note the fees and/or interest rate for your transfer.
Take out cash or a money order.
Alternatively, make a wire transfer or a money transfer, or use a credit card convenience check.
Deposit the money into your bank account, or wait for your transfer to complete.

By taking out cash or a money order, you can make an indirect transfer between your credit card and your bank account. A wire or money transfer can be slightly more convenient, as you can initiate them online.

If your credit card provider allows it, you can also transfer money with a credit card convenience check.

Take out cash or a money order

If you bring a debit card to an ATM, you can withdraw cash. Do the same thing with a credit card when you use a cash advance.

Alternatively, take out a money order. Find one at your supermarket, a local money-transfer agent, a US Postal Service office or your bank. Money orders can be relatively inexpensive.

Once you’ve obtained cash or a money order, deposit it into your bank account. Many banks allow deposits through ATMs. You may also be able to make your deposit at a branch.

Make a wire transfer or money transfer

Make a wire transfer through your bank. Before you do, check if the bank allows credit card payments.

Also, consider money-transfer services like Western Union and MoneyGram, which allow you to transfer funds with a credit card.

Wire transfers and money transfers involving credit cards generally come with relatively high fees.

Use a credit card convenience check

Your card provider may occasionally send you credit card convenience checks.

When you write one, it’s as if you’ve swiped your credit card. The amount you put on the check will be drawn from your credit line — and you have to pay it back eventually.

Carefully read your provider’s fine print before using one of these checks. If you’re lucky, you’ll get a promotional interest rate on it. Otherwise, the check will be treated as a cash advance.

What to consider before transferring money from a credit card

When you transfer money from a credit card to a bank account, your transaction will most likely be coded as a cash advance.

Consider these important points about cash advances:

You’ll probably pay a cash advance fee.
A common cash advance fee is $10 or 5% of the transaction, whichever is greater. For example, if you take out $500, the fee could be $25.
Look out for the cash advance APR.
Cash advances usually have higher APRs than purchases or balance transfers.
Your transaction will start accruing interest immediately.
Unlike purchases, which often have grace periods on interest, cash advances start collecting daily interest right away.

Because cash advances can be expensive, consider other options if you need funds in a hurry.

Personal loan. This may be one of your best options. If you have decent credit, you may get a better interest rate than your cash advance APR. You could also get funds in your bank account within a business day.
Borrow from friends or family. You may find someone willing to help you.
Credit union loan. If you have a relationship with a credit union, you could negotiate a loan even if your credit score isn’t where you want it to be.
Paycheck-advance apps. The Earnin app gives you limited advance funds that you pay back when you receive your paycheck.

You can transfer money from a credit card to a bank account — but it might cost you more. Consider the costs for a cash advance, which likely comes with a higher interest rate and transaction fees.

If you have time, consider the alternatives to a cash advance. You’ll find many reputable services that can help you if you’re in a financial pinch.

How might a payday loan help?
Many personal finance experts say you should consider payday loans as a last resort. You must repay these loans very quickly, and they usually have sky-high interest rates. Consumers who take out payday loans often find themselves trapped in debt cycles that can snowball.

What’s a common cash advance APR?
You’ll commonly see APRs upward of 25% variable. These are very high rates, so avoid them if possible.

What’s a grace period on interest?
After your credit card billing cycle closes, your card provider will bill you the amount you’ve spent. You’ll typically have a grace period of 21 to 25 days to pay your balance. If you do, the balance won’t incur interest.

Kevin Joey Chen was a credit cards, banking and investments writer for Finder. His work and analysis have appeared on CNN, U.S. News & World Report, Business.com, Lifehacker and CreditCards.com.